An Asset Based Loan Is When A Borrower Avails Of A Loan Against A Borrowing Base That Is The Assets That The Borrower Might Possess At The Time Of The Loan

Category: Finance.

An Asset based loan is when a borrower avails of a loan against a borrowing base that is the assets that the borrower might possess at the time of the loan. The term borrowing base implies all the assets of the business or company including real estate, existing plant and machinery, inventory and even the receivables of the company, i. e. material sold on credit, but payments not yet received, or even purchase orders or letters of credit from overseas clients.

A borrower might require an asset based loan to expand his/ her business or to fund new acquisitions or mergers, or for a turnaround of his company or to stave away impending bankruptcy or even for the purchase of new plant and machinery. Asset based lenders can show more flexibility, since they have, while approving loans the borrower s assets as collateral in case of any problem in recovering the loan amount and can also be flexible in the mode of repayment. But, whereas traditional lenders would advance loans against only fixed assets as collateral, asset based lending companies, not only advance loans against fixed assets, but also against receivables and they could also take future profits into account, which traditional lenders would not consider. Borrowers should compare the cost of availing an asset- based loan with a traditional loan and also measure it against the benefits offered by availing the loan. Also, in a traditional loan, a borrower might just get a fixed amount, whereas in an asset based loan, the amount might vary as per the borrowers current and future standing. Borrowers with huge orders from credit worthy clients or borrowers facing liquidity problems due to seasonal sales could also benefit from asset based lending.

So, if borrowers have limited fixed assets, but show great future potential and have a healthy receivable report in their hand, then asset based lenders would be willing to advance bigger loans to them. Borrowers have to submit regular details of the current status, not only of their property, but also of their receivables to their lenders as per their requirement. With banks tightening their lending norms and the prices of real estate sliding southwards, this could turn out to be an advantage for asset based lenders, who could see more borrowers at their doorsteps. However, the credit crunch especially in the US market has now put some strain on the traditional lending institutions, since the inter, such as banks bank liquidity crunch has now spread from the US to the UK and also to other European countries. The problem is that the fixed assets, which are to be attached as collateral, are reducing in their market value on a day- to- day basis and this could affect both the lenders and the borrowers. So, for medium to large corporations requiring capital for mergers or acquisitions, or even restructuring during these tough times, asset based lending groups can provide customized solutions, as per the corporations needs. However, if the borrowers receivables are healthy and if his business shows future potential, then an asset based loan is a better option to the now strictly monitored traditional loan.

So, whatever the sector, asset based lending companies can tailor make a suitable loan to suit any corporation or companies or businesses and these tough times may see them veer away more from the strict rules of lending banks to a more flexible asset based lender.

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HUD- When FHA Backed Mortgages Fail, The Homes Are Then Transferred Directly To HUD - Finance:

If you were granted a personal bankruptcy decision over the past several years you know that obtaining new credit is difficult, almost impossible. It won t necessarily be an easy thing to do, but you could be in your new home if you explore some of the options open to you.

There Has Always Been A Degree Of" Racy Glamour" To The World Of Property Investment - Sofia Sowards about Finance:

There has always been a degree of" racy glamour" to the world of property investment. Investing in residential property has become well and truly established in recent years.

Try Looking At Payday Loans

Category: Finance.

Why Would You Need A Payday Loan? I could think of a hundred and one reasons given enough time but here are some that I thought of, off the top of my head.

Indeed, why would anyone need to have to take out a payday loan? Home Repair or Home Improvement. It s a Monday and your kitchen plumbing goes bonkers. Let us face it- sometimes, when things want to go wrong, and there is, they will nothing we can do about it. Ok, you can handle this- some DIY work will solve the problem. Or maybe that faulty door knob finally decided to give up. Then the upstairs bathroom decided to follow suit.

I am sure that there are a hundred other scenarios that could come up on any given day or week. That s when a payday loan can come in really handy. Lucky for you if you have the spare cash to deal with everything all at once but what if you don t? It will take care of the repairs speedily. You want a new patio? There s home improvement as well.

You want to upgrade that roof? I don t really recommend taking out a payday loan for non- emergency purposes, as it can, though become a habit that might be hard to get rid off. Whatever you want that is within the range of a payday loan, you can have done. Last Minute Trip. Yet what about those emergency trips that you do not really foresee? Most of the time, we plan our trips so that we can budget and save up for it, right?

For example, a close relation falls ill and you have to fly across the country? Things like these, you do not plan for and it is understandable that you may not have the cash to deal with them. Or maybe your closest friend suddenly announced that her wedding was to take place in a week and you simply have to be there? So where do you turn to? Car Payments. Try looking at payday loans.

This should have been factored in when you bought your car- it is as simple as that. There are times when we would find out that we simply cannot make this month s payment for the car. However, we are all human and sometimes, our calculations are not as accurate as we would want them to be. You know what would happen if you miss a payment- the consequences are grave. So, instead of having to face these consequences, wouldn t you rather take out a payday loan? They differ depending on various circumstances, but they would, of course range from having to pay a hefty fee to losing your car.

Sure, it would cost you money as well but would you rather face the alternative? I think I shall have more to say about this topic in the next post. These are only three of the things that I could come up with at the moment. In the meantime, why don t you think of your reasons as well?

This Phenomenon Is Due To Multiplication Effect Of Market Influences

Category: Finance.

Even beginner trader is well aware how important is testing of trading strategy on historical price data to estimate its efficiency. One can wonder why at all to pay so much attention to quantities without any exact reliability.

Everybody who tried to write own strategies in Metastock� or Trade Station� was able to watch performance charts of initial capital growth throughout the period of strategy execution and also everybody observed typical statements: "past performance is not a guarantee or a reliable indication of future results" , which typically accompany performance charts. The simple answer tells: because there is nothing better to measure trading prospects. This serves as a root to numerous strategies of risk management, which seek to achieve the balance between profits from aggressive trades and associated losses in case when the market direction estimate is incorrect. People with basic knowledge of mathematics would surely remember to mention probability theory associated with stock market modeling and high degree of error associated with market trend forecasting. However, in many cases such estimates appear also wrong. Market itself is extremely complex system and to date there is no proven theory to explain it in any finite model allowing for easy trend calculation.

There is simple and evident proof for such a high volatility of market forecasts. The most risk estimates suppose that market behaves as some black box system with associated plain probability measures such as moving averages and variances approximating error limits. This phenomenon is due to multiplication effect of market influences. Nevertheless, there is quite generic evidence that these criteria appear inadequate in most market conditions. Consider long pipeline transporting raw oil. It may seem that the ultimate probability of pipeline fault as a whole will appear as a simple sum of associated probabilities for every fragment of a pipeline.

Suppose every part of pipeline can suffer accident with some known probability. However, it is not the case because the fault in every pipeline segment would cause the fault of the pipeline as a whole. In mathematical terms, it will mean that there will be severely violated the conditions of so known Central Limit Theorem, which defines the statistical variance as a reliable measure of probability distribution associated with the value. Therefore, cumulative probability would appear not as a sum but as a product of associated probabilities. It reveals that the most risk management strategies implemented worldwide are not reliable. However, one should not be mathematician to observe its real world manifestation in abrupt huge losses of trading institutions and world market instabilities, by far, which, are not the results of errors of some evil minded individuals, as often told to wide public, but are due to fundamental stochastic laws which rule the modern market.

Only few mathematicians with good background in statistics can understand and rigidly prove this point. There exist special mathematical techniques devised to diminish the influences of cause multiplication factor on the accuracy of ultimate statistical estimates. The simplest of such measures is median point of distribution, which acts as a reliable nonparametric replacement of the average value. Known as nonparametric statistics, they are well described in many statistical textbooks. Another measures concern special statistical hypothesis testing techniques aimed to estimate reliability in cases where regular variance looses its sense as illustrated above. It allows making back testing alternatives and measuring the risk in different terms against common trading performance standard.

Aura Forecast Engine( http: //stockfusion. net) is the special forecasting platform, which makes use of nonparametric statistics and other nonlinear techniques such as Friedman coefficient, fractal dimension, Hurst coefficient, K- Sample and Kruskal- Wallis tests and Shannon probability to make automatic expert choice of best market forecasting strategy appropriate to any given set of historical data. Even despite past profitability chart may look impressive in term of immediate strategy goal, it appears not reliable in terms of estimating future trading performance, which greatly dissolves common risk estimates based on it. Much less known nonparametric alternatives can serve as better reliability guides to investors seeking the better weighted revenue indicators.

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New Kinds Of Mortgages In The UK - Polly Epps about Finance:

New Kinds of Mortgages in the UK.

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Dr.

Credit Card Terms

Category: Finance.

Credit Card Terms.

Credit terms and conditions affect your overall cost. A credit card is a form of borrowing that often involves charges. So it s wise to compare terms and fees before you agree to open a credit or charge card account. You also may want to ask about these terms when you re shopping for a card. The following are some important terms to consider that generally must be disclosed in credit card applications or in solicitations that require no application. Annual Percentage Rate. It also must be disclosed before you become obligated on the account and on your account statements.

The APR is a measure of the cost of credit, expressed as a yearly rate. The card issuer also must disclose the" periodic rate" - the rate applied to your outstanding balance to figure the finance charge for each billing period. Because the rate change is linked to the index s performance, these plans are called" variable rate" programs. Some credit card plans allow the issuer to change your APR when interest rates or other economic indicators- called indexes- change. Rate changes raise or lower the finance charge on your account. And. how the rate is determined- which index is used and what additional amount, the" margin, " is added to determine your new rate. If you re considering a variable rate card, the issuer must also provide various information that discloses to you: that the rate may change.

At the latest, you also must receive information, before you become obligated on the account, about any limitations on how much and how often your rate may change. Also called a" grace period, " a free period lets you avoid finance charges by paying your balance in full before the due date. Free Period. Knowing whether a card gives you a free period is especially important if you plan to pay your account in full each month. If your card includes a free period, the issuer must mail your bill at least 14 days before the due date so you ll have enough time to pay. Without a free period, the card issuer may impose a finance charge from the date you use your card or from the date each transaction is posted to your account. Annual Fees.

They often range from$ 25 to$ 50, sometimes up to$ 100; "gold" or" platinum" cards often charge up to$ 75 and sometimes up to several hundred dollars. Most issuers charge annual membership or participation fees. Transaction Fees and Other Charges. Some issuers charge a fee if you use the card to get a cash advance, make a late payment, or exceed your credit limit. A card may include other costs. Some charge a monthly fee whether or not you use the card.

If you don t have a free period, or if you expect to pay for purchases over time, it s important to know what method the issuer uses to calculate your finance charge. Balance Computation Method for the Finance Charge. This can make a big difference in how much of a finance charge you ll pay- even if the APR and your buying patterns remain relatively constant. Average Daily Balance. Examples of balance computation methods include the following. This is the most common calculation method. To figure the balance due, the issuer totals the beginning balance for each day in the billing period and subtracts any credits made to your account that day.

It credits your account from the day payment is received by the issuer. While new purchases may or may not be added to the balance, depending on your plan, cash advances typically are included. The total is then divided by the number of days in the billing period to get the" average daily balance. " Adjusted Balance. The resulting daily balances are added for the billing cycle. This is usually the most advantageous method for card holders. Purchases made during the billing period aren t included.

Your balance is determined by subtracting payments or credits received during the current billing period from the balance at the end of the previous billing period. This method gives you until the end of the billing cycle to pay a portion of your balance to avoid the interest charges on that amount. Previous Balance. Some creditors exclude prior, unpaid finance charges from the previous balance. This is the amount you owed at the end of the previous billing period. Some creditors also exclude unpaid finance charges.

Payments, credits and new purchases during the current billing period are not included. Two- cycle Balances. Read your agreement carefully to find out if your issuer uses this approach and, what specific two, if so- cycle method is used. Issuers sometimes use various methods to calculate your balance that make use of your last two month s account activity. If you don t understand how your balance is calculated, ask your card issuer. Other Costs and Features.

An explanation must also appear on your billing statements. Credit terms vary among issuers. If you expect to pay your bills in full each month, the annual fee and other charges may be more important than the periodic rate and the APR, if there is a grace period for purchases. When shopping for a card, think about how you plan to use it. However, if you use the cash advance feature, many cards do not permit a grace period for the amounts due- even if they have a grace period for purchases. Also, if you plan to pay for purchases over time, the APR and the balance computation method are definitely major considerations. So, it may still be wise to consider the APR and balance computation method.

You ll probably also want to consider if the credit limit is high enough, how widely the card is accepted, and the plan s services and features. An affinity card issuer often donates a portion of the annual fees or charges to the sponsoring organization, or qualifies you for free travel or other bonuses. For example, you may be interested in" affinity cards" - all- purpose credit cards sponsored by professional organizations, college alumni associations and some members of the travel industry. Special Delinquency Rates. These rates sometimes exceed 20 percent. Some cards with low rates for on- time payments apply a very high APR if you are late a certain number of times in any specified time period.

Information about delinquency rates should be disclosed to you in credit card applications or in solicitations that do not require an application. Keep these tips in mind when looking for a credit or charge card. Shopping Tips. Shop around for the plan that best fits your needs. Hold on to receipts to reconcile charges when your bill arrives. Make sure you understand a plan s terms before you accept the card.

Protect your cards and account numbers to prevent unauthorized use. Tear up carbons. Draw a line through blank spaces on charge slips so the amount can t be changed. Keep a record- in a safe place separate from your cards- of your account numbers, expiration dates and the phone numbers of each issuer to report a loss quickly. Carry only the cards you think you ll use.

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The Home Owners Then Have The Option To Fully Pay Or Refinance Their Los Angeles Mortgage - Finance Blog:

There are many options for Los Angeles home loans today that were not readily available just a few decades ago. While the traditional mortgage has a 30- year repayment term, a longer Los Angeles mortgage term makes homeownership possible for a wider range of buyers.

Point 1- Avoid Day Trading Systems - Emily Obrian's Finance blog:

There are many forex trading courses and educational material that a person can find online.

The Quantities Of Available Finance Courses Are Bountiful - Finance Blog:

Thanks to the influx of technology and the Internet what once was only available to a privileged few is now available to a wide array of people from all walks of life. Simply put, finance education and financial courses are available with the click of a mouse.

Insolvent Voluntary Liquidation

Category: Finance.

The term liquidation refers to the selling of assets and other holdings to pay off debts.

Contrary to popular belief, not all liquidation is called for by legal compulsion and organizations can opt for voluntary liquidation. The term dissolution is often used with liquidation, as liquidation is usually the final stage in the closure of a company. Although there are various legal alternatives to voluntary liquidation, sometimes voluntary liquidation is the only option available to a company. Voluntary liquidation is a mutual decision made by company owners/ decision makers and is designed to avoid any legal complications( or when a company is being dissolved) . In a nutshell, voluntary liquidation is the process of converting a company s assets to cash. If the liquidation is carried out to pay off debts, then the voluntary liquidation is further divided into two categories: Solvent voluntary liquidation.

Before any liquidation attempt, the heads of an organization meet and decide if the voluntary liquidation will yield sufficient cash to pay of the company s debts. If the voluntary liquidation results in sufficient cash to pay off the debts, then the liquidation is referred to as a solvent liquidation. If the organization feels that a voluntary liquidation will keep them solvent, the company chooses to carry out the voluntary liquidation. Sometimes an organization carries out liquidation irrespective of the overall cash that will be generated. Insolvent voluntary liquidation. A voluntary liquidation is said to be insolvent when the funds generated cannot pay existing debts. An insolvent voluntary liquidation is also carried out when an organization is expecting compulsory liquidation orders and wishes to avoid lengthy legal processes.

An insolvent voluntary liquidation is usually the result of a cutting losses scenario where the heads of an organization decide to dissolve an organization irrespective of existing debts. In the event of an insolvent liquidation, the company creates a list of preferred creditors to decide which debts need to be paid first. Creditors can also choose legal recourse if they feel they are not being given proper priority in an insolvent liquidation. For example, a company might have granted a creditor a secured status and will ensure that secured creditors are paid back on a priority basis. Once an organization chooses to liquidate its assets, it usually holds a meeting with investors( shareholders) and creditors to explain the reasons for choosing liquidation. What is equally true of voluntary liquidation is that it is a lengthy procedure that requires internal and external audits. The meeting also allows creditors to question the company s motives for opting for voluntary liquidation.

In addition, there are numerous legal requirements that have to be met before an organization can carry out liquidation. For example, an organization running retail stores will prefer hiring an organization that specializes in store sales( instead of attempting voluntary liquidation themselves) . In fact, there are numerous organizations that specialize in helping organizations carry out voluntary liquidation. In fact, larger organizations prefer using the services of more than one organization to help them carry out voluntary liquidation. For more information on voluntary liquidation visit www. lineshenry. co. uk/ voluntary- liquidation. html

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If You Are Not Sure Whether Credit Cards Are Really Necessary, Then Here Is Some Advice To Help You To Decide If You Need A Credit Card Or Not - Finance:

If you don t have a credit card or have one that you don t use very much, you may be asking yourself: "why do I even need a credit card? " Many people are sceptical about the need to have a credit card, even though so many others have more than one. Do I need a card?

Refinance Loans Are Commonly Used Especially In The Case Of Mortgages - Brenda Carbonaro's Finance blog:

The refinancing of a loan is simply where you attain a secured loan to replace an existing loan that has the same assets acting as security.

Building An E- Commerce Website- - What Does It Entail - Lolita Grassl about Finance:

Building an e- commerce website- - what does it entail? You would either need a little of their help or search online for a reliable company that offers a package of services for high risk merchant account owners> .

Term Life Insurance Is Often Purchased On A" Per Unit" Basis

Category: Finance.

Of the many forms of life insurance, term life insurance is one of the most popular. It is also thought to be the one pure form of insurance as it builds no cash value over time.

Term life insurance is considered to be the original form of life insurance. This is the opposite of many of the other types of life insurance such as whole life, and the other, universal life variants. Once that time period is over, the person may end the policy completely or may pay additional premiums and continue the policy. Some of the more important features of term life insurance follow: Term life insurance provides coverage for a limited period of time. If the insured dies during the term, the death benefit will be paid to the beneficiary. Term life insurance is often purchased on a" per unit" basis. Of particular importance to many consumers is the fact that term insurance is often the most affordable way to purchase a substantial death benefit.

The more units the insured has the more the death benefit will be. As there is no cash value with term insurance it is used primarily as a death benefit. Term insurance functions in a manner similar to most other types of insurance in that it satisfies claims against what is insured if the premiums are up to date and the contract has not expired, and does not expect a return of Premium dollars if no claims are filed. The money received from a term policy is usually used for such things as burial expenses, college education for, debt payoff dependents, and mortgage payments. This is a simple and effective way to cover a person with life insurance. Many consumers will buy what is known as an annual renewable term policy.

At the end of the year, another policy can be purchased or the consumer can drop the company altogether. If you expect to keep coverage for any length of time, you may want to ask for a rate quote for a longer period of time. It should be noted that when purchasing yearly the premiums may go up with each new policy. That may save you money in future premiums. This is true even if the insured had a policy the previous year or previously agreed upon time frame. Consumers should also be aware that the insurance company may turn down an applicant for health reasons.

In other words, say a person bought a policy and during the coverage period was discovered to have a terminal illness. There are some ways around this problem. The insurance company may elect to not renew at the end of the current policy if that person is still alive. One of them is through the use of" guaranteed re- insurability" programs that some companies offer. With this type of insurance, the premium is paid for one year of coverage, but the policy is guaranteed to be able to be continued each year for a given period of years. Another method might be through the use of an annual renewable term policy( ACT) .

The length of time varies depending on the policy but usually runs from 10 to 30 years. At some point in time the premiums would be higher than the policy payoff but the chances of the benefit being paid( somewhere along the time line) are much higher with this type of term life insurance. It should be noted that as the insured grows older, the premiums increase with each renewal period.

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Reverse Mortgages- Let Your House Pay You - Finance Articles:

Reverse Mortgages- Let Your House Pay You!

Free Merchant Accounts Are Not The Culprit Here - Carlene Osterman's Finance blog:

Nobody s perfect.

Merchant Accounts And Sales - Finance Blog:

The basis of any successful internet or e- commerce site today is the way in which they handle there electronic transactions. Earlier a majority of sites were restricted by the way they accepted there on- line payments, however with the advent of newer payment gateways and on- line transaction sites it is has become essential that webmasters accept almost all major payment methods.

A Secured Loan Is One That Uses Collateral As A Safety Cushion

Category: Finance.

A poor credit secured loan is a wise choice for one who wishes to improve their credit rating and who needs to borrow money for a variety of different reasons. As lenders are heavily competing for business, they are making these loans available to many individuals who, would not be, years ago able to borrow money.

As interest rates in the United Kingdom are at an all time low, many individuals are choosing to borrow money to make home improvements, finance an education or consolidate debt. Including those with poor credit. Bank cards are unsecured loans that generally have a high interest rate. One reason why many people have poor credit is the overuse of bank cards. Many people who carry high balances on their bank cards have a difficult time making the scheduled payments and see no hope in paying off the balances in the near future. A secured loan is one that uses collateral as a safety cushion. In addition, if a catastrophic event occurs, such as losing a job, many people fall behind in their payments, causing them to get poor credit.

Collateral is something of value that a person owns and then borrows against. This makes good sense as a secured loan against home generally offers a much lower rate than an unsecured loan. In many cases, people use their homes as collateral when borrowing money. Those with poor credit who own their home can benefit greatly by poor credit secured loans. Getting a secured loan and paying it off is the best and fastest way to repair one s credit rating. Not only will they get the cash they need to make large purchases, pay off existing debt on high interest bearing bank cards and even make home improvements, but by paying the secured loan off in a timely manner, they will be improving their credit rating. There are many reasons why people borrow money.

And as many home improvements are quite costly, most people need to borrow the money to pay for these improvements. Generally, it is wise to borrow money to make home improvements as they tend to add to the value of one s home. Another good reason to borrow money is to consolidate debt. By applying for a secured loan, you can consolidate your debt into one easy, low monthly payment. Having many different loans with different bank cards can get confusing and may be inconvenient to pay. As the interest rate on a secured loan is generally less than on a bank card, your monthly payment will be much less than if you were to pay off these loans individually. Because interest rates on secured loans are so low, many people are choosing to get a secured loan at a much lower rate than an unsecured loan.

Other people find it necessary to borrow money to finance an education or make a large purchase. In this way, they are saving quite a lot of money. Here you can learn all about poor credit secured loans, terms and conditions, their rates. To discover which poor credit secured loan is right for you, visit Finance Tracker. Poor credit secured loans are a sound financial decision for those who wish to repair their credit rating as quickly as possible.

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Cash Advance Provides Liquidity When Most Needed - Claudine Fetzer's Finance blog:

It is always a good idea to solve debt problems with creditors as soon as a person realizes that he/ she will be unable to make payments.

Budgets Can Make You Feel Good - Claire Marten about Finance:

Why is it so many of us hate the idea of living a budget- based life?

These Offer Special Terms That Enable You To Rebuild Your Credit - Finance Articles:

The reason that there are so many types of business credit cards on the market- even from within the stable of the same business credit card issuer- is that each of these addresses a different set of needs. There are a number of established business credit card brands, each with a distinctive package of benefits that may be markedly similar in some ways, yet discernibly different in terms of their features.